A reverse mortgage allows you to withdraw equity from your home. Many seniors use the money to pay for medical expenses, living expenses and financially support themselves throughout retirement.
There are some basic requirements to qualify for a reverse mortgage. The first being you must be a homeowner age 62 or older. You must own you home outright or have a mortgage low enough that it can be paid off at closing with a portion of the money you will get from the reverse mortgage. You must be able to financially continue to pay for your property taxes and homeowners insurance and finally, you must live in the home. There are other qualifications but these are the basic ones to consider if you should look into getting a reverse mortgage.
Your options for receive disbursements from your reverse mortgage loan will vary from lender to lender and depend on the loan amount.
Typically your options are:
-Term payments: You will receive equal monthly payments for a fixed period of time chosen at the time of the loan.
-Tenure payments: You will receive equal monthly payments for as long as at least one borrower is alive and living in the property.
-Line of credit payments: These are installments or unscheduled payments which you can decide to take at any time and amount that you need until the funds run out.
-Single Disbursement: You will receive a single disbursement at the mortgage closing and it is up to you to budget and use as needed. You cannot receive additional disbursements or payments in the future on the same loan.
This information is to help guide you though the reverse mortgage process and to help you decide if a reverse mortgage is right for you. For additional questions, a quote or to set up an appointment with a loan officer, please contact us at:
846 South Main Street Bountiful, Utah 84010